Russian aircraft makers need new recovery strategy – Deputy PM

Rogozin proposed setting up a consultative body to regulate relations between the aviation industry and its customers. Source: ITAR-TASS

Dmitry Rogozin proposed that all major Russian aircraft brands should be revived as part of new development strategy to conquer lost markets.

The Russian aircraft industry must implement a new
development strategy to conquer lost markets, Deputy Prime Minister Dmitry
Rogozin said Wednesday.

“Despite all efforts, the Russian civil aviation market has
been lost to a great extent by our manufacturers,” Rogozin, who is responsible
for the defence and aerospace industries, said at a government meeting to
discuss the situation in the civil and military aircraft industries.

“The situation is unacceptable, so whether you agree or not,
we must develop a strategy of new re-conquest,” he said, noting that up to 80
percent of all civil aircraft on Russian domestic flights are foreign-made.

According to company data, Aeroflot and Transaero, Russia’s
two leading airlines, fly mostly Boeing and Airbus planes, with just a handful
of Russian-made Ilyushin Il-96-300, Tupolev Tu-214, and Sukhoi Superjet 100-95
aircraft in service.

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Rogozin proposed that all major Russian aircraft brands
should be revived as part of the new strategy.

“These are such national drivers as Tupolev, Sukhoi, MiG,
Yakovlev and other well-known brands, which for some inexplicable reasons have
been pushed almost into oblivion…,” he said.

Rogozin also proposed setting up a consultative body similar
to the Russian government's Marine Board to regulate relations between the
aviation industry and its customers.

Russia has produced only one totally new passenger plane
since the collapse of the Soviet Union, the Sukhoi Superjet 100 regional
airliner. United Aircraft Corporation, the holding which incorporates the
myriad elements of the Russian fixed-wing aircraft industry, is due to begin
production of the MC-21 (formerly known as the MS-21) mid-range airliner in
2017, according to Russia's Rostech holding, UAC's parent company. Aeroflot
will be launch customer for the aircraft, with 50 on order.

The Russian civil aircraft industry faces massive competition
from Airbus and Boeing, which have received orders for 734 and 692 airliners
each so far this year, the Guardian reported last month. China has also
announced it intends to start producing its own airliner, the Comac C919, which
will compete head-on with the MC-21.

Russia currently produces no light aircraft, but at last
month's Paris air show, Rostech announced a tie-up with Austria's Diamond
Aircraft to start production of a new 19-seat utility plane intended for local
air services in Russia.